Rich vs. Wealthy – Why Mindset Matters!

Do you want to be rich, or do you want to be wealthy? There’s a huge distinction between being rich vs. wealthy. Understanding the difference is the missing ingredient you need to truly enjoy your money.

So, if you want to be wealthy, find out the one thing you need to create wealth that makes a real difference, not only in your life but also in generations to come… tune in now!

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Rich vs. Wealthy: What’s the Difference?

You might be wondering why I’m stressing this distinction, but there’s a good reason. If you’re rich, you can have a high standard of living. You can probably buy things that you want without thinking too deeply about the implications. Begin rich means you can do all the things that you wanted to do when you sought to be rich in the first place. 

But there comes a time when you may realize that, as an entrepreneur, you have limitless earning potential. It’s well within your control to increase your income and put new business on the books, create new products and so much more. It’s at this stage that you may have a revelation of sorts.

[1:45] “If you make this money and you spend the money, there’s still something more. There’s something missing. There’s this part of you that realizes, well, you can buy all the things, but what then? What next? How do you make it really matter?”

The truth of the matter is that being rich simply means you have a high standard of living. That’s it. And that’s okay. But being wealthy means your money does the most for you. 

Make Your Money Do The Most

When your money is doing the most for you, it’s actually operating within its own purpose and contributing back to your life. Wealth does more than increase your standard of living. It also creates cash flow and allows you to help other people besides you. 

[2:45] “Just consuming leaves us feeling empty. I mean, there’s really only so much we can purchase.”

There’s only so much that money can do when you are consuming. The deeper, underlying desire of a “consumer” mentality is connection and purpose. That’s what people want. And it requires you to give a higher purpose to your money, rather than the act of consuming alone. 

What is Your Money’s Purpose?

[5:00] “Really, what I think about when I think about money doing more for me is really, I have to conceptualize where can I put my money? What are the options for the things I can do with my money?”

Ultimately, there are only three things you can do with your money. You can spend it, you can save it, or you can invest it. Making more money seems like a good solution to many problems, but ultimately it’s only one piece of the puzzle. The missing component to many wealth-building journeys is a fulfilling plan for saving and investing that gives your money purpose. 

So you must identify the purpose of your money. If you just want to have a bigger pile of money, you’re still going to run up against the feeling of frustration and emptiness that you might be feeling. Instead, you have to look a bit deeper to find your money’s purpose. 

If you’re building time and money freedom, then you have the capability to have all of your needs met through cash flow from your assets. Then you can spend your time on what you choose to be doing. You can cultivate this through investing in businesses and assets that are sustainable and create cash flow. 

The True Freedom of Cash Flow

This differs from having a high salary or earning a paycheck from the work that you do. Because the foundation of cash flow that you build from your savings and investments will actually allow you to choose how you spend your time. This includes your work life—this cash flow model prevents you from working a job you hate simply because it makes you rich. Instead, every additional second of your time can be spent doing exactly what you want to be doing, including your work choices, because you’re earning enough passive cash flow to make that decision independent of your “needs.”

[7:25] “This is separate from just having a high paycheck or a lot of income from the work that you do, because at no point can you step out of living that life and still have the money flow in. You need to continually have more launches or more projects or more programs or more clients in order to have that income stream.”

Self-sustaining assets give you the ability to make money independent of the time you spend. You are no longer trading dollars for time. 

Spending Your Time on Things That Matter

As great as a life on the beach with your family may sound, we believe that’s not what people really want. At least not permanently. There’s only so much time you can spend in relaxation before it, too, becomes draining. People want purpose, and using our time to be of service gives more meaning to those moments spent with family or relaxing. 

However, when you have time and money freedom thanks to cash flow, you get to decide where you contribute and create meaning. This is a key distinction between rich vs. wealthy.

Generational Legacy

One way to create more meaning with your money is to use your time and skills to contribute to your family’s growth and understanding of wealth. The time you spend now with your children can help their children and your grandchildren’s children after that. When you consider your time and knowledge as a part of the legacy you pass down, then you don’t just focus on accumulating money to gift to them. You also help your children cultivate a mindset that can help them grow, save and invest their own wealth, and instill principles and values in them. When you raise your children to have this mindset, you also help them to one day raise their children the same. 

[9:50] “Wealth means your money is doing the most. The most possible… not just for you, but for generations past you. That means you’re thinking about a legacy; that means you’re thinking about generations ahead… What are they going to be capable of because of the money that you are creating and managing well today?”

Rich vs. Wealthy: Which One Are You?

Making money may make you rich, but having money and managing it well is really what can make you truly wealthy. This requires you to shift your focus from earning and consuming, and also look at investing and cultivating resources that generations beyond can benefit from. 

You can save a pile of money, and pass it on to them, for them to become consumers. And that’s okay. But you can also train them to think of wealth as something beyond cash and embody that in their own lives. 

[11:20] “My vision for my children and my grandchildren and my great-grandchildren is to be able to give them the keys and the tools and the character to be able to manage whatever resources come to them from me and from their own production…”

My Upcoming Book

I have been working on a book that addresses this very concept of generational wealth, and what it means to be rich vs. wealthy. In part, I did this because I think of my family as a team, and we want to help other families do the same. In the book, I address the ins and outs of creating wealth, creating cash flow, and transferring assets (including the instructions for the next generation).

You can’t just have the money or the systems. You also need guidance within your family, so that each member of your team is on the same page. Meeting and identifying the purpose of your money together can help everyone to walk more fully in their power, or their “A game.” If you’re interested, you can subscribe to our email list to get updates on the book’s release. 

Are You An Influencer?

As I’m getting ready to launch my book, I’m opening up a pilot group coaching opportunity just for influencers (authors, speakers, coaches, investors, who love their family and want to do the most with their money. Email me at hello@themoneyadvantage.com for more information about Generational Legacy Coaching.